Which of the Following Statements Is False

question 44

Multiple Choice

Which of the following statements is false?

• A) A board is said to be classified when its monitoring duties have been compromised by connections or perceived loyalties to management.
• B) Even the most active independent directors spend only one or two days per month on firm business, and many independent directors sit on multiple boards, further dividing their attention.
• C) On a board composed of insider, gray, and independent directors, the role of the independent director is really that of a watchdog.
• D) Because independent directors' personal wealth is likely to be less sensitive to performance than that of insider and gray directors, they have less incentive to closely monitor the firm.

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Definitions:

Reflected

Pertains to light, sound, or heat being thrown back by a surface without absorbing it.

Refracted

The process by which a wave, such as light or sound, changes direction as it passes through a boundary between two different media.

Interface

A surface forming a common boundary among two different phases, materials, or substances, in various scientific contexts.

Liquefied

Turned into a liquid form, often referring to gases that have been converted to liquid under pressure.